Business

Institutional investors step up IT play

By Dan Neff

The ISG index — a measure of commercial outsourcing contracts — rose 8% quarter on quarter in annual contract value in managed services. This growth in the core operating space for Indian IT services firms indicates continued strength in large deal activity.

Synopsis

Local funds raised allocation to IT stocks by 70 basis points in June on a month-on-month basis, the highest across sectors. Interestingly, out of the top 20 domestic funds, only three are overweight on IT — this leaves a significant room to expand from the current level if the momentum continues.

ET Intelligence Group: Institutional investors are raising wagers on the information technology counters, thanks to a strong deal pipeline and expectation of several companies beating revenue guidance in the first quarter of fiscal 2022.

The sectoral weight of domestic funds rose to a multi-month high of 11.7% in June 2021, according to data compiled by Motilal Oswal Financial Services.

Local funds raised allocation to IT stocks by 70 basis

BY

ET Bureau

3 mins read, Last Updated:

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Dan Neff